Wall Street pros warn of more stock market volatility 🎢
Minneapolis Fed's Kashkari 'actually happy' about the sell-off 🥊
The Fed-sponsored financial market beatings continue.
The S&P 500 fell 3.4% on Friday and another 0.7% on Monday after Federal Reserve Chair Jerome Powell reiterated that the central bank’s ongoing efforts to cool inflation would come with “some pain” in the economy.
“I was actually happy to see how Chair Powell's Jackson hole speech was received,“ Neel Kashkari, President of the Minneapolis Fed, said to Bloomberg on Monday.1
As TKer subscribers know, Powell’s message was consistent with what Fed officials have been saying for months, and it refuted the idea that they pivoted in a dovish way at their July meeting.
All this means that investors should continue to brace for market volatility as we await “compelling evidence” that inflation is coming down.
“For the near term at least, pain will be the name of the game,” Sam Stovall, chief investment strategist for CFRA Research, said on Monday.
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